Commerce reports 9% growth in first-quarter net earnings

Commerce Bancshares Inc., the holding company for Commerce Bank, April 13 announced earnings of 75 cents per share for the three months ended March 31. Those earnings represent a 14 percent increase compared to 66 cents per share in the first quarter of 2003.

Net income for the first quarter amounted to $51.3 million, compared to $47.2 million for the same period in 2003, representing an increase of 9 percent. According to a Commerce news release, the return on average assets for the three months ended March 31 was 1.45 percent, the return on equity was 14.1 percent and the efficiency ratio was 59.2 percent.

"Growth in net income was driven largely by an increase in noninterest income, coupled with continued good expense control. Trust, deposit and bank card fees all grew in excess of 10 percent when compared with the previous year," said David W. Kemper, chairman and CEO of Commerce Bancshares, in the release. Kemper added that the company's investment securities portfolio was repositioned, resulting in $8.2 million in gains on sales of securities, compared to $2.3 million in the first quarter of 2003.

Total assets at March 31 were $14.5 billion, total loans were $8.1 billion and total deposits were $10.3 billion.

During the quarter, Commerce increased its cash dividend to shareholders by 7 percent, and the board of directors authorized a 3 million-share stock buyback plan. Commerce Bancshares Inc. is a registered bank holding company operating in approximately 330 locations in Missoui, Illinois and Kansas.